Rare earth producers lift after China tightens export controls
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The news: ASX-listed rare earth producers lifted in afternoon trade after China’s Ministry of Commerce tightened restrictions related to rare earth elements and related technologies by banning the export of processing and manufacturing technologies without a permit.
The numbers: At 1:49pm AEDT, shares in Lynas Rare Earths had lifted 5.3% to $20.59. Iluka Resources (+2.3%) and Arafura Resources (+5.3%) also lifted.
The context: The restrictions extend to technologies used in the mining, smelting and separation of rare earths, manufacturing of magnets and the recycling of rare earths. Exports intended for military use are unlikely to have their permits approved.
Beyond trade exports, the restrictions also apply to intellectual property licensing, investment, joint R&D and consulting, among other activities. It will also capture magnets made overseas and some semiconductor components made with at least 0.1% of Chinese rare earth materials or technology.
The restrictions are expected to come into effect from 1 December 2025.
China has previously restricted export of a series of rare earth magnets and materials in April, on top of other critical mineral export restrictions, key sticking points in the negotiation of a trade deal with the US.
